Binomial Option Pricing Model

Posted in Finance, Accounting and Economics Terms, Total Reads: 2369

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Definition: Binomial Option Pricing Model

The binomial options pricing model (BOPM) is one of the most commonly used option pricing models. Though in calculation it is more complex as compared to the black-scholes option pricing model but is widely used due to the fact that the model describes the value of the underlying and the corresponding option value under various scenarios.